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Masood Textile Mills

Masood Textile Mills

Preface
It is the age of information & competition. The scientific advancement has made the life more
dynamic & competitive worldwide. So one must have practical knowledge and trained enough to
live successfully in present competitive situation because it is becoming difficult to survive
without creating changes & adapting ourselves according to these changes.

The students of MBA receive knowledge during their study, has completely theoretical base. Their
ideas remain unsaturated, unless students do not have any practical experience. So to provide the
students an extensive exposure of practical business aspects, department of business management
sciences arrange a compulsory 6 weeks internship program, for all of its MBA students, in a wellknown organization. This thing enables the young business executives to familiarize with
professional business approach. To enhance their writing skill, the students are also required to
make the written presentation of their experiences during internship program.

Masood Textile Mills Ltd. (Apparel Division) a leading organization in Garment sector was
assigned to me for internship. This report is about my experience & knowledge, which I have
gained during my internship program. In this report I have made a humble attempt to express most
efficiently and effectively what I experienced & observed at Masood Textile Mills (Apparel
Division). I think that this report will be really helpful for those who want to know about Masood
Textile Mills Limited (Apparel Division) Faisalabad.

Masood Textile Mills

Contents

Sr no:

Discription

Page no:

1. Executive Summary............................................................................................................. 9
2. Objective of the Study....................................................................................................... 10
3. Introduction........................................................................................................................ 11
a. Awards..................................................................................................................... 12
b. Mission..................................................................................................................... 15
c. Vission......................................................................................................................15
d. Customers................................................................................................................ 16
e. Product line.............................................................................................................. 17
f. Organizational Hierarcy........................................................................................... 19
g. Apparel Division...................................................................................................... 21
4. Human Resource Department.......................................................................................... 23
5. Merchandising Department.............................................................................................. 33
6. PPC Department................................................................................................................ 38
7. Production Department..................................................................................................... 43
8. Quality Assurance Department ........................................................................................49
a. MilitarySample Standards........................................................................................ 52
9. Industrial Engineering...................................................................................................... 53
10. Stores .................................................................................................................................. 56
8

Masood Textile Mills


11. Financial Department........................................................................................................ 59
a. Balance sheet........................................................................................................... 62
b. Cash Flow Statement............................................................................................... 64
c. Profit and Loss Account........................................................................................... 65
12. Marketing Analysis............................................................................................................ 66
a. SWOT analysis........................................................................................................ 67
b. PEST analysis.......................................................................................................... 69
13. Conclusion & Recomendations......................................................................................... 70
14. Bibliography....................................................................................................................... 72

Masood Textile Mills

Executive Summary

In this 8 weeks internship program I attended the lectures of key departments (Cutting, Stitching,
PPC, Merchandising, Quality Assurance, Stores) of this largest knitted garment manufacturers of
Pakistan which are delivered by experienced managers running these departments. After attending
the lectures I also visited these departments for acquiring practical knowledge.
All the departments of Masood Textile Mills Ltd. (MTM) start their activities when the
merchandising department receives the purchase order (PO) from the customer. This PO is sent to
PPC department for further processing. After the PO confirmation the stitching department gets
cutting from induction department and starts production, other departments also work along with
production units.
I also observed that MTM is fully modernized and equipped with latest cutting, stitching and
packing machines. Complete back track system and Apparel Management Systems are unique
characters of MTM. It is fully equipped with quality control laboratory which frequently check the
quality of fabric. Quality assurance checks the quality of finished products; it makes sure 100%
error free products.
Human Resource Department in Masood Textile Mills Ltd. (MTM) is very strong. There are four
main functions of HR department. Which are Recruitment and selection, Compensation and
benefits, Training and development and Performance appraisal.

10

Masood Textile Mills

Introduction:
MTM(apparel division) is a SBU of Masood group.Masood group was founded by Mr.Ch Nazir
Ahmad father of Mr.Shahid Nazir.Kohistan bus service was the first professional step by Ch.Nazir
Ahmad After wards dreamland hotel, sangeet cenima and aizad beverages were established in
1978 and 1983 respectively. Mr.Shahid Nazir and Mr.Zahid Nazir helps his father by the formation
of industrial cooperative bank along with the development of Rabia trust hospital. Kaka khel Ghee
mills and a flying training school were founded in 1994. The Masood Textile Mills is a Public
Limited company. The company has latest equipment and machinery to serve globally. The
company has modern computerized networking system. All the Accounting and finance related
work is carried out through computers. The company has capability in Fabric, Ginning, Spinning,
Knitting, Laundry and Apparel manufacturing.
The companys apparel division, which is producing high quality garments, is situated at Sargodha
road, near General Bus Stand Faisalabad. But its registered office has shifted to canal road
Faisalabad. Which is obtained on lease? The company implemented the quality system and had
awarded ISO 9002 & WRAP certificate. The company maintains quality standard at all levels to
establish consistency and efficiency. The company is exporting its products to U.S.A, U.K. and
Germany

12

Masood Textile Mills

AWARDS

FTL Accuracy of Information and Compliance Supplier award (2006)

FTL has awarded MTM "Accuracy of Information and Compliance Supplier Award ".

JCPenney Purchasing Partnership Award (2004 , 2006)


Posted on 12-April-06

JCPenney has awarded MTM "Purchasing Partnership Award".

UBL - UBL Award


Posted on 12-April-07

Divisional Quality Award 2005


Posted on 25-May-06

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Masood Textile Mills

JCPenney has awarded Masood "Divisonal Quality Award".


WRAP - Worldwide Responsible Apparel Production (2004, 2005, and 2006).
Posted on 25-May-06

Masood Textile Mills Ltd. is certified by the WRAP Certification Board.

Quality Control Award 2005


Posted on 21-May-06

Fruit of the Loom has awarded Masood "Quality Control Award 2005".

Operational Excellence Award for 2002


Posted on 23-Jul-03

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Masood Textile Mills

JCPenney has awarded Masood "Operational Excellence Award for 2002".

JCPenney has awarded Masood "Best Quality Award for 2002" Certificate.

"Quality Recognition 2001-2002" Certificate


Posted on 30-Nov-02

Russell Corporation has awarded "Global Quality Recognition 2001-2002"Certificate.

JCPenney Awards Masood "The best supplier of the region award 2001-2002". The ceremony was
held in Singapore on 17th July 2002. Shahid Nazir (C.E.O.) received this award.

15

Masood Textile Mills

Company Mission:
"Our Mission is of continual improvement and sustained growth, and of a family of workers. Who
are given the best compensation benefits and working conditions in the region. In this respect,
mTm continues to emphasize the need to invest in and develop its most precious resource - its
human capital. mTm continues to provide training courses and self-enhancement opportunities for
all our workers".

Vision
To be the worlds best apparel company

Organizational Values
Trust.Integrity.Respect

Quality Policy
1. Customers satisfaction
2. Zero Defect/Never Ending Improvement
3. Total Quality Management
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Masood Textile Mills

Main Cuctomers of MTM:

Champion

Chaps

Calvin Klein

Dockers

Product
line:

MTM is a leading apparel company in Pakistan having expertise & machinery capable of
transforming customer ideas into superior quality garments, which are taken as the most
GAP

Hanes

JCPenney

Levi's

Nautica

Polo

Polo R.L

Russell

Speedo

Tommy Hilfiger

Tom Tailor

Vantage

Sears

Jockey

Guess

Foot Locker

famous brands in the world.

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Masood Textile Mills

Types of fabrics:

Jersey

Single jersey

Bird eye

Striper

Lycra

Sueded

Double

Heavy jersey

Rib

Interlock

Terry

Waffle

Mini thermal

Pique/pk fabric

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Masood Textile Mills

Vertical Operations:

Spinning
Knitting
Fabric dying

Mills

Finishing
Laundry
Cutting

Stitching
Finishing

Apparel Division

Packing

Organisational Hierarchy:

Chief Executive
Officer
19

Masood Textile Mills


General manager

Senior Manager

Manager

Deputy Manager

Assistant Manager

Senior Officer

Officer

Management
Trainee

Employees
Permanent Employee
Mills

6500

Garments

9515
20

15015

Masood Textile Mills


Piece Rate Workers
Mills

4000

Garments

4529 8529

TOTAL

23544

Departments
Departments can be distinguished into three categories
Operations, Services & Finance

1. Operations

Production Planning & Control

Industrial Engineering

Cutting

Production

Quality Assurance

2. Services

Human Resource

Information Technology

Merchandising

Purchase

Quality Assurance
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Masood Textile Mills

Product Development

3. Finance

Accounts

Inventory

APPAREL DIVISION Organizational Structure


Flow of Apparel Division

Marketing

Merchandising

PPC

Cutting

Induction

Production

Sewin to Pack

Quality Control

Quality

Assurance

External Audit

Shipment

22

Organizational Structure of Apprel Division:


General
Manager

Div. Manager

Div. Manager

Production
Manager
AP Manager

Unit Manager

Quality Control
Manager

Product
ion
Supervi

Inline
Superv
isor

Clippin
g
Superv

Finshi
ng
Superv

Packin
g
Superv

Operat
ors

Inline
Inspec
tor

Clippin
g
Person

Final
Inspec
tor

Packin
g
Person

HRM Department
At a general level, it is important to analyze training needs against the backdrop of
organizational objectives and strategies. Unless you do this, you may waste time and
money on training programs that do not advance the cause of the company People may be
trained in skills they already possess the training budget may be squandered on rest and
recuperation sessions, where employees are entertained but learn little in the way
required job skills or job knowledge, or the budget may be spent on glittering hardware
that meets the training directors needs but not the organizations.
It is also essential to analyze the organizations external environment an internal climate.
Trends in the strategic priorities of a business, judicial decisions, civil rights laws, union
activity, productivity, accidents, turnover, absenteeism, and on the job employee behavior
will provide relevant information at this level.
However, assessing the needs for training does not end here. It is important to analyze
needs regularly and at all three levels in order to evaluate the results of training and to
assess what training is needed in the future.
At the organizational level, senior managers who set the organizations goals should
analyze needs.
At the operations level, the managers who specify how the organizations goals are
going to be achieved should analyze needs.
At the individual level, the managers and workers who do the work to achieve those goals
should analyze needs, keeping in mind that performance is a function both of ability and
motivation.

Human Resource Planning


Human resource planning is all about measuring the organization need to identify the
numbers of employees and skills required to do those jobs. Further, an understanding of
available competencies is necessary to allow the organization to plan for the changes to
new jobs required by corporate goals.
At MTM, major changes according to economic and social environments are required
purchasing new and additional office equipment to enhance efficiency e.g., computer
hardware or software, coping with the recall of a defective product and dealing with the
need for a new design e.g. new automatic rotary machine.
This suggests several specific, interrelated activities that together constitute an human
resource planning system.
They include:

A talent inventory to assess current human resources and to analyze how they are
currently being used.
A human resource forecast to predict future HR requirements.
Action plans to enlarge the pool of people qualified to fill the projected vacancies
through such actions as recruitment, selection, training, placement, transfer, promotion,
development and compensation.
Control and evaluation to provide feedback on the overall effectiveness of the human
resource planning system by monitoring of HR objective.
.

Structure of the HRM Department:

Manager HR

Assit Manager
HR

Sr. HR
executive

HR executive

HR Assistant

Number of Employees working in HRM Department


Now Ill discuss the personnel management of Masood textile Limited under various
steps of Human Resources Management Masood Textile also knows this fact and has
personnel department. Personnel Department of Masood Textile can be critically
analyzed on the basis of various steps of human resources management process.
First I would like to describe the ware bouts of department. Department is situated in an
old building which was constructed at the time of establishment of Masood Textile. There
are about 100 personnel who actually handle the departments affairs.

Major Functions of HRM department


Every organization whether it is a multinational conglomerates a small business, a
religious institution or a government agency depends on people. Appropriate candidates
for each job from chairman of the board to night shift janitor must be located either inside
or outside the organization and they must be convinced by pay benefits and working
conditions to take and keep the job. They must also be trained and motivated. Handling
these functions is part of human resources managements job.

Functions of HRM
Department

Recruitm
ent

T&D

Recruitment
There are two types of recruitment
Permanent Recruitment

Rewards
&
Benefits

Compensa
tion

Time
Managem
ent

Contractual Recruitment

Permanent Recruitment:

Management Level

Non Management Level

Management Level
Management Trainee

M6

Merchandiser
Assistant Manager

M5
M4

Deputy Manager

M3

Manager

M2

Senior Manager

M1

Non Management Level


Unskilled Worker

S4

Semi-skilled Worker

S3

Skilled Worker

S2

Supervisor

S1

T&D
Off Job Training
On job Training

College Visits
Internships
Seminars, Lectures, functions etc.

Rewards
Performance Reward System PRS
Unit of the Month
Best Final Inspector
Best Inline Inspector
Best Cutting Inspector
Promotions
Overtimes

Compensations and Benefits


Leave Policy
To grant different kinds of leave to its employees in order to facilitate them to
attend, to their domestic and social responsibilities.

Types of leave
The types of leave available to employees are,
1) Causal leave
2) Sick leave
3) Earned leave
4)Leave without pay

5) Maternity leave

Casual leaves:
Every employee will be eligible for ten days causal leave in each calendar year.
1)Causal leave can be granted on pro-rata basis, proportionate to the length of
service.
2)Un-availed causal leaves shall lapse automatically at the end of every calendar
year.
3)Causal leave cannot be combined with any other type of leaves except sick leave.
4)Causal leave can be availed for a maximum period of 3 days at one time.

Sick leaves:
Every employee will be eligible for eight days sick leave in each calendar year.
1.Sick leave will be granted on pro-rata basis, proportionate to the length of service
2.Sick leave exceeding 2 days must be supported by a medical certificate from a
registered medical practitioner.
3.Sick leave may be Accumulated up to a maximum of 16 days

Earned leaves:
Every employee will be eligible for earned leave as follows
Workers-14 days
Staff-15 days
1.Earned leave will be due only after completion of one years continuous service
with the company from the date of joining.
2.Earned leave shell be credited to the employee account at the end of each year of
service
3.It is incumbent for management staff in grade M-12 and above to avail a
minimum of 15 days earned leave in a calendar year.

4.Earned leave lying to the credit of an employee will be encashed at the time of
separation for the company for employee up to Grade-12.

Leave without pay:


There is no provision of leave without pay in Law. How ever extra-ordinary leavewithout
pay may be granted at the discretion of the competent authority in specialcircumstances
involving absence from duty

Maternity leaves:
1)Female married employees who have been employed for more than one year will
be granted maternity leave.
2)Maternity leave of 12 weeks, 6 weeks each before and after the delivery will begranted
on production of medical certificate from a registered medical practitioner

Leave Encashment
Sick Leaves

Casual Leaves

10

Encashment Leaves

14
32

Other Benefits
EOBI (Employee old age benefits & Insurance
Death Grants
Marriage Grants

Scholarships
Group Insurance
Health Insurance

Time Management
Card Scanning system
Keep the daily attendance of employees.
Make the settlement of the resigned employees to be further proceeded to the H.R
Department.
Gives the half leaves or temporary leave for about 1 to 2 hours

Other Responsibilities
Grievance Handling
Charge Sheet

Administration Department
Security
House Keeping
Transport

Support of HR to other Departments


The H.R Department is the key strength of any organization in motivating
employees, managing HRMIS system, dealing external affairs, handling with each
departments performance, making promotions etc..so my major area was Human
Resource Department.
Through job rotation policies and by extensive interaction with managers in all other
functional areas. Unless these executives are perceived as equals by their corporate peers,
their ability to make significant contributions to the firm will be diminished.
Require the senior HR executive to report directly to the CEO. At present this occurs in
about 70 percent of companies nationwide. Consider whether any corporate resource is
more important than its people. Ensure that the top HR officer is a key player in the
development and implementation of business plans providing early warning regarding
their acceptance and serving as the CEOs window on the organization and as a sounding
board.
Representatives from HR and line managers from the business unit generate key business
strategies for the coming year. To do so, they identify major external and internal factors
that may have an impact on the future of the business, together with future customer
requirements.

Mechandising Department:
It is bridge between customer and factory. It is performing the task of marketing in
MTM. The objective of merchandising department is to retain the existing customers, and
keep continuously communicate with them and also to attract new customers.CEO and
Marketing Manager attend different exhibitions all over the world to attract these
sourcing companies. All the sourcing companies are the Customers of the Masood
Textile Mills. Merchandisers are the representatives of Masood and they keep contact
with customers. Merchandisers also try to acquire new customers and contracts through
personal selling.

Hierarchy in Merchandising Department


GM. Marketing

Associate
Merchandising

Asst.
Merchandiser
GM. Marketing

Merchandiser
Management
Trainee

Asst.
Merchandiser

No of Employees in Marketing Department


Mr. Tayyab Masood is General Manager of Marketing Department of Masood Textile
Mills Ltd. There are almost 103 numbers of employees working in marketing department.

Working of Merchandising:
A merchandiser receives a product package (ppk) which contains time line, fabric detail,
article description (polo, Henley, crew neck) and accessories detail. After receiving the
PPK the merchandiser sends it towards PPC department that checks availability, price,
quantity and quality. After that the merchandise accepts the order and then send them
proto sample. Price negotiation will start. Price is determined on two basis either it is
customer based or it is product based. Customer based pricing is done by keeping in view
the market position of the customer .The factors which they take into consideration are
brand popularity and the income level of the ultimate customer Product based pricing is
done by the specifications of the product. After accepting the proto sample fit sample is
sent to buyer and after this clearance production in bulk is started.

Functions of Merchandising:
Market analysis
Data analysis
Sourcing
Procurement
Product planning and R & D

Pricing
Distribution
Communication
Visual
There are main two main products used in the seasons:
Replenishment products
Seasonal products

Product Package
PPK involves 4 types of informations
Fabrication
CMT
Quota
Shipment

Fabrication
The type of fabric that will be used to make the product different types of fabric are used,
like single jersey, fleece etc.

CMT
CMT stands for cutting manufacturing and trims .

Quota
Quota is fixed for different countries according to the garment style.
Note: with the implementation of WTO, quota system has been deleted in the practice
of import and export, so it will no further exist.

Shipment

Shipment includes the ex factory and the ex country dates that are given by the
customers.
Whenever the merchandiser receives the product package following things are done:

Costing

Proto sample

Fabric development

Accessories development

Shipment is done through two ways

By boats

By air

Mode of transaction
When the merchandiser negotiate with the customer he demands letter of credit and bank
guarantee etc from the customer

Follow up by the merchandiser


Merchandiser is involved in the process from receiving the purchase order and payment

Countries of Export:
MTM is making a good effort to increase the market share. Today company is exporting
its products to many countries like,

USA.

Hong Kong

Japan

Germany

Malaysia

Singapore

Korea

Thailand

PPC (production planning & control)


PPC stands for product planning and control. As its name indicates its function i.e., to
plan a purchase order and control thereof. PPC is the bridge between merchandising and
production department. PPC department plays an indispensable role in a garment
manufacturing company. Its responsibilities start from the negotiation between
merchandiser and customer and ends on the shipment of PO. This department works on
the basis of 3Ms (Man, Machine, and Material).

Producti

Merchandisi
ng

on

PPC

There are three sections in PPC department.

Planning

Costing

Control

Functions of PPC:

Optimization of resources (man, machine, material)


Costing research and development(R&D)
Purchase order receiving
Capacity
Time line (time, action)
Fabric accessories (stitching and packing)
Fabric demand plan (lead time)
Accessories demand plan

Hierarchy of PPC Department:

PPC ( senior Manager)

Senior Deputy
Manager

Deputy Manager

Assistant Manager

Senior Officier

PPC Officier

Working of PPC
Buyer sheet or product package received by merchandiser that PPK includes

color and size breakdown

what is the GSM required

what are the finishing parameter

garment wash or not wash

size specs parameter

Color and size breakdown


It means that how many pieces are required . if color and size are not available .
Cutting cannot and consumption will not be accurate.

GSM requirement
GSM is given by the customer it is gram per square meter .if GSM is more less
pieces are made. if the GSM is less more pieces will be made.

Factory finishing standards


Factory finishing standards like torching, bowing, skewing, ph value, shrinkage,
color fastness.

Garment wash or not garment wash


How many washes the customer are requires when the garment is wash their
GSM and shade problem

Size specs parameter


Length size, color size arm holes, shoulders length etc. Margins are always kept
so that after washing it comes to the actual specs

If the garment is not to be washed there is no need to keep the margin.

Costing steps

Costing

Time lines

To plan the accessories

Fabric planning

Unit planning
In costing you have to see each and everything

Type of fabric

Gram mage of the fabric

Finishing standards

Yarn quality

Knitting charges

Recipe cost

The cost details are given to the merchandiser and he communicates with the
customer. if the price is acceptable then the order is given
Then PPC has to plan that order it will take into consideration three things

Material planning

Machine availability

Unit planning

Material planning
Material planning includes the fabric plan and the pattern availability details
about the accessories etc.
Machine availability
Then PPC has to see that machines are sufficient to run the purchase order.
Unit planning
The purchase order will be run in which unit so we have the production
capability so we have skilled labor to perform the task.

Production
There are total 12 stitching units with over 1,749 stitching machines, manned
with the most skilled and expert operators, Masood is capable of producing about
150,000 dozens approximately per month versatile garments ranging from basic
to high fashion, mens, womens and kids with maximum flexibility in size and
color assortments. The Quality control and Quality Assurance departments are in
place to make sure the companys objective of zero defect. Computerized Bar
coding and Back Track systems provide Masood 100% predictability and tracking
performance. Orders of different companies are processed in different units
according to their skills. They operate under the objective of Zero Defect. Here
quality control is merged with the production.

Management hierarchy
Production departmnet

Senior
Production

Unit
Production

Production
Manager

Manageemen
t Trainee

Assitant
Production

Production flow
Production department receives samples from the merchandising department the
production department finalize the flow by keeping that sample in mind. The task
is to improve productivity and to have the maximum output

Process
Production process Is as follows:
1. Stitching (Process flow)
2. Clipping
3. Ironing
4. Finishing
5. Packing
6. Shipment

Production supervisors job responsibilities

Setting of flow

Arrangements of machines

Checking of induction

Arranging number of operators according to flow

To meet the targets

In line supervisor job


To maintain quality and help in line inspector

In line inspectors
To check the garment is stitching quality operation wise.

Kinds of needles
No. 9 to 14

Kinds of Machines

Flat lock

Button Hole

Bar take

Heat Transfer

Feedo

Mini Cylinder

Auto trommer

Zig Zag

Button Attach

Cylinder Bed

Elastic Attach

Overlock

Lockstitch

From cutting department the pieces goes to the production


department for stitching. The pieces are stitched than it goes in
the enter. From here the stitched fabric goes to clipping to
remove the extra threads. Then the garment goes for finishing.

Finishing flows

Pressing

Final inspection

Super inspection

Specs

Packing

Major Finishing faults


Stain (oil, dust)
Alter (skipping, stitch broken)
Rafu (small holes)
In final inspection stain, alter and rafu faults are removed. If
there is a major faults are send to reprocessing.

Packing procedure
After finishing the garment goes in packing, ID labels Stickers are pasted
Garments are folded packed in ploy bags. After that packed in master poly bags.

Different types of packing

Assorted packing

Solid packing

Catalog packing

Assorted packing
Color is same but different sizes ratio are packed together, Or
Size is same but different sizes ratio are packed together

Solid packing
Same color and same size
Solid by color (Color remains same)
Solid by Size (Size remains same)

Catalog packing
Different sizes and different color, say according to the requirements of the buyer,
each bundle will have its own specification and packing details

Shipment moves to store


ASN (advance security note)
Security sticker
Bar code sticker

Production problem

Pieces are rejected

Pieces are short


In both the cases short fall are sanded to PPC department

Quality:
It is a standard achieved by process to render defect free product.

Quality control:
Implementation of process to achieve the required standard.

Quality assurance:
Preventive measures taken to make defect free product.
Responsibilities of quality assurance:
There are three responsibilities of quality assurance.
(1) Monitoring the system
(2) evaluating staff involved
(3) assuring quality of product

Hierarchy of Department

Manager Quality
Assurance

Deputy Manager QA

Assistant
Manager
Internal
Audit

Assistant
Manager
Final
good

QA Officer

QA Officer

Acceptable Quality Level


AQL mean a standard of Rejection and acceptance defined by the mutual
concentration of buyer and seller, where they mutually decides size of the sample
and standard for rejection and acceptance

Overall Quality Level


OQL is a standard where garments are audited on their total rating, also called
average quality rating, after the AQL, when over percentage of rejection is checked it
should also comply with the standards already defined or decided in agreements.

Close Loop Corrective Action(CLCA):

51

52

53

Industrial engineering
Industrial engineering is that branch of engineering, which deals with the Productivity
increases the using all the available resources. These resources are following.
1.

Men

2.

Materials

3.

Money
54

4.

Machine

5.

Methods

6.

Systems

7.

Land/space

Industrial engineering provides us a systematic (step by step) organized way of increasing


productivity using simple techniques.

Productivity:
It is defined as the ratio of output and input i.e.
Productivity = Output / Input
From the above formula .it is very clear that one or the combination of the following ways
can increase productivity:
(a) Decreasing input, while keeping the output same.
(b) Increasing output, while keeping at the input same.
(c) Increasing output appreciably with slight increase in the input.
(d) Decreasing output slightly with significant decrease in input.

Scope of I.E.
Industrial engineering techniques are applicable everywhere, starting from a small
Office, home, training places, small industry to a large industry.
It helps in:
Better layout planning.
55

Designing work aids.


Re structuring an organization/ Re engineering
Methods improvement.
Training in better methods
Setting SAMs for the better methods
Problem solving using studies by scientific methods

Advantages:
Managing extra work in the same available space.
Vacating extra premises got on rent.
Increased output with the same manpower and machines.
Increased quality due to better managing/methods
Reduced throughput /cycle time, using refined layouts.
Reduced crises-cross movement of men and materials
Less W.I.P, using better systems (line lay out)
Bette5r money circulation, as less capital tied up in W.I.P.
Less material wastages, as no place to hide.

56

Stores
There are three stores in MTM.
Main store
Fabric store (Stock pledge)
Shipment store

Main Store:
There are two types of things, which come under main Store.
1. General:
Stationary, machine parts, maintainace and sentry etc.
2. Accessories:
Buttons, thread, zips, labels, and needles etc
57
After approval
Store
issue
Forward
Quality
check
by
Goods
Received
Inward
Gate
GRN
take
over
Purchase
General

Main
store

After approval
Store
issue
Procurement
Quality
control
Goods
Received
Inward
Gate
Pass
GRN
take
over
Acc.
Demand
Accessories

Shipment store:
As it is evident from the name, purchase orders which are ready to be shipped, are store
here. In Masood when production order is completed then it is packed in boxes and barcodes
are pasted on them. These barcodes contain all necessary information regarding the contents
of boxes. All the information regarding the Quality checks of shipment is done here. On the
day of shipment the boxes are loaded on trucks and final entries are stored in computer.
The process of the shipment store is
Receiving
Racking (customer wise)

Receive to quality
Audit for QA
OK report after audit

Green slip only on audit


Packing list (merchandiser

Fabric store:
The PPC department sends demand of fabric to fabric store according to plane of party
order, which is required by buyer. When the fabric reached at main gate then received by the
fabric store, on the gate only the weight of the fabric is checked. Inspection of the fabric is
handled in mills in Fabric Inspection Department (FID). When fabric is reached at gate then
interword gate pass is made. Then fabric shifted into store in the racks and racks are
according to customers. When the fabric is rejected it come first in store then sent to mills
by making Outward Gate Pass (OGP)

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Structure of Finance Department:


a) No of Employees
Masood Textile Apparel Division Finance Department consists of 38 employees at different
level with different job descriptions.

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b) Finance & Accounting Operations


o Maintaining the data base of accounts department
o Historical and periodical reports
o Presentation of Financial Statements
o Cash flow statements and cash disbursement
o Bank reconciliation statements
o Reconciliation with parities
o Variance analysis
o Production vs. shipment analysis
o Analysis on loss of profits
o Performance evaluation reports
o Yield analysis
o Monthly Stock reports of all units & stores
o Working of Compliance Audit.

Function of Finance Department:


Accounting Systems
Finance System
Use of Electronic Data in Decision Making
Mobilization of Funds
Generation of Funds
Allocation of Funds

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Financial Analysis

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In 2008 Deffered income on sale and lease back of operating fixed asset are 4,891 and in
2009 it is decreased by 2,515
In 2008 total equity and liabilities are 8,234,421 and in 2009 it rose to 9,621,739
In 2008 non current assets are 3,047,941 and in 2009 it rose to 3,166,615
And current assets in 2008 are 5,186,480 and in 2009 it is increase by 6,455,124
So total assets in 2008 are 8,234,421 and in 2009 it is increase by 9,621,739
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Net cash generated from operations was 981,748 in 2008 and in 2009 it decrease to 632,821
In 2008 net use in investing activities is 415,397 and in 1009 it is decrease to 370,513
Net cash use in financing activities in 2008 was 1,458,832 and in 2009 it is decreased to
78,537
So cash at the end of the year of 2008 was 137,255 and in 2009 it is increase to 321,026

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Sales in 2008 was 7,884,785 and in 2009 it is increase by 10,946,180


So Gross profit is also increased in 2008 it was 1,455,987 and in 2009 it is 2,094,764
Profit after tax in 2008 was 333,753 and in 2009 it is increased to 451,706
So earning per share in 2008 was 11.13 and in 2009 it is increased to 15.06
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Major Competitors of the Organization


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The major competitors of Masood Textile Mills Limited are as


1. Chenab Fabrics Limited
2. Amtex Limited
3. Arzoo Textile Mills Limited
4. Sapphire Textile Mills Limited
5. Crescent Textile Mills Limited

These are the local competitors at the textile city but MTM face in international market so
their competitors are the CHINA, INDIA and BANGLADASH in these countries labor is so
much cheaper available, so they sell their product in the international market cheaper as
compare to Pakistan.

Core competence:
The core competency of the MTM is it IT based system and quality control.

Unique selling point (USP):


Quality control system is their usp.

SWOT Analyses of MTM


Internal factors
Strength

Quality products

Skilled labor

Using modern and latest technology

Back track system

Highly educated management

Vertically integrated system

Using apparel management system


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ISO certified

Weaknesses

Having low space

High turn over

Communication gap between different departments

N- corporative culture

High production cost

External factors
Opportunity

Exploring new markets

Capturing European countries

Can expand their operations and finding new market segments

Using their own label

Opening their outlets throughout the world

Globalization

End the quota system, now they expand the business

Full potential of entertaining the local market

Threats

Competition increase in that particular region.

Depend only a few customers

Low price offer other competitors just like china & India

Politically instability in Pakistan

Change government policies that are not in favor of textile industry

Globalization

PEST Analysis
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Political situation:
The political situation of Pakistan is not satisfactory and unstable. Rapid change in
the Govt. and the change of the policies of the previous govt. by the new govt. abruptly
effect the Pakistans political situation. Due to these entire factors the foreign investor
hesitates to invest in Pakistan.
Govt. should device such policies that are beneficial for the local exporter as well as for the
investors.

Economic Situation:
The economic condition of Pakistan is not suitable for investment. Market growth
rate is very low and new investors hesitate to invest. Increasing inflation rate
due to heavy loan make the business environment strict. Actually increase in
inflation rate leads to high cost of production so our country products sell out
at a high price but with low margin.

Social Situation:
The change in the lifestyle of the people affects the growing demand of the MTM
products. The change in the lifestyle and needs in different demographics also affect the
demand of the customers.
Due to all these changes MTM is performing excellent for the excellence of organization as
well as for the customer.

Technological Factor:
Technological advancement in all the sectors of the country has changed the entire
socio-economic environment. Especially textile sector has incorporated technological
development and advancement in their organizations.

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Conclusion & Recomendations


Masood textile mill is the best knit wear in the world. In a short span of time, the company
has established a good image in the international market.
Although there is a tough competition in the international market, but Masood textile mills is
continuously going on its way to prosperity .The main customers of Masood are, JC
PENNY, SARA LEE.
They have established a good image in the mind of its customers. This is all due the
companys high quality products. Company quality assurance department is so well
establish that some times the customers request the quality inspector to visit some other
company s where their other products are being manufactured, so the quality of that
company can be checked.
China, India, Bangladesh are the major countries, which have direct competition with
Pakistan. Due to quota system the company has accepted only limited orders. The main
advantage to the company is of its mills unit. The company has manufactured the fabric
itself, so the cost of the production of the company is much reduced. Raw material like
fabric and ribs are produce by itself.

Suggestions
Need to develop a culture of cooperation and teamwork. For this purpose a
revolutionary commitment from higher management is required at this time,
otherwise MTM may not be able to cash the benefits of quota elimination.
The misbehavior of some responsible managers with the working force is creating
unrest and feelings of being treated like slaves among the workers. For the purpose
of improvement in this sector the line management should be trained and must be
educated how to behave the workforce.
Decentralization of authority should be there. With the active participation of all the
management level employees in the decision-making is fruitful for MTM.
Employees should be encouraged to come up with revolutionary thoughts.
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Proper training at each level should be given to the employees.


Special incentives like bonus on Eid and on other special days should be given to the
employees.
Should hire well-educated, trained, and experienced young professionals.
There should be a complete follow up of ISO 9002 certification according to desired
quality standards.
The low capacity is generating problem for MTM. Due to low capacity the MTM has
to:
a. Procure Yarn from market, which cause delays, variations and high
prices.
b. Knitting from out door, that cause delays, variations and high prices.
c. Dying and finishing of the fabric from out door, that also causes the same
above mentioned problems.
The biggest problem that I think this low capacity is generating is extraordinary pressure on
the working force. This creates mental toughness and stress among the employees,
especially among the PPC department staff.
The solution to this entire problem is obviously the increase in capacity of production. But
this task should be done systematically through proper planning and after preparation of
feasibility report.

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